Temasek-backed home grown FMCG firm Godrej Consumer Products Ltd (GCPL) has forayed into the hair salon segment with a deal to acquire 30 per cent stake in Mumbai-based premium hair salon chain B:blunt for an undisclosed amount.
"GCPL has entered into an agreement to acquire a 30 per cent stake in Bhabani Blunt Hair Dressing Pvt Ltd (B:blunt)," GCPL said in a BSE disclosure on Monday without mentioning the terms of the transaction.
Started in 2005 B:blunt is positioned as a premier hair salon company. It has 17 outlets spread across Mumbai, New Delhi, Hyderabad, Pune, Indore, Bangalore and Dubai.
For GCPL, this comes as yet another inorganic expansion move. It has been consistently acquiring firms in the hair care business, a segment where it has products spread across the hair colour, hair dye, mehendi and hair oil products. This would be its ninth acquisition in the hair care category since 2005 and the second such deal related to India, according to VCCEdge, the financial research platform of VCCircle.
Majority of its acquisitions in the business have been overseas, including a bunch of them located in Africa and a few in Latin America.
These include deals for Cosmetica Nacional (Chile), Argencos (Argentina), Issue Group (Argentina), Kinky, Darling and Rapidol (Africa) besides UK-based Keyline and Swastik Shikakai owner Naturesse Consumer Care (India).
Besides hair care products, GCPL is into household and other personal care products. Its brands include GoodKnight, Cinthol, Godrej No. 1, Expert, Nupur, aer, Hit, Fairglow, Ezee and Protekt.
With B:blunt it would gain an exposure in the fast growing hair care services segment. Interestingly, this deal would also pitch it against Marico who operates salons under Kaya brand. Marico is backed by GIC, another sovereign wealth fund of Singapore. Temasek is also a state investment fund of Singapore.
Shares of GCPL last changed hands at Rs 873.10 apiece, down 0.58 per cent from its previous close on BSE in a flat Mumbai market. The announcement came after markets closed for the day.
(Edited by Joby Puthuparampil Johnson)